The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 20,272.49 points, closed at 20,355.63 points, up 323.29 points or 1.61 percent from its previous close at 20,032.34 points.

Earlier in the day, the BSE was hit by a technical snag, which led to a halt in trading from noon to 2.30 p.m.

At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty ended at 6,117.55 points, up 1.66 percent.

Broader markets also closed in the green. The BSE midcap index ended 1.69 percent higher, while the BSE smallcap index moved up 1.21 percent.

Top Sensex gainers were ICICI Bank, up 5.97 percent at Rs.1,231; M&M, up 4.65 percent at Rs.765.90; Jaiprakash Associates, up 3.62 percent at Rs.124.60, and HDFC, up 3.16 percent at Rs.709.

Among the losers were Maruti Suzuki, down 2.74 percent at Rs.1,508.70; Hero Honda, down 1.37 percent at Rs.1,840.20; NTPC, down 0.92 percent at Rs.193.15, and Reliance Industries, down 0.25 percent at Rs.1,093.10.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors were net sellers after weeks of constant buying. They sold scrips worth $216.40 million Monday.

Other Asian markets too also traded higher as stocks rallied on strong manufacturing data from China.